Under activity based management,cost management is achieved by
A)Managing the underlying activities.
B)Reducing production volume.
C)Eliminating value-added activities.
D)Assigning indirect costs to products based on their activities.

Question

Quizplus · Accepted Answer

Activity based management focuses on managing the underlying activities of an organization in order to reduce costs and improve performance. By identifying and managing the specific activities that drive costs, companies can make decisions that lead to more efficient and effective operations. This can involve reducing unnecessary activities, streamlining processes, and investing in activities that create value for customers. Therefore, option A is the best choice as it aligns with the principles of activity based management.

Under Activity Based Management,cost Management Is Achieved by